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Affirm - AI Stock Analysis

Analysis generated December 18, 2024

Affirm is a financial technology company that provides installment loans to consumers at the point of sale. The company aims to revolutionize the way people pay for goods by offering transparent and manageable payment options. Affirm has garnered attention for its "Buy Now, Pay Later" service, which has seen increased adoption in recent years. Their partnerships with various retailers and merchants have expanded their market presence significantly.

Fundamental Analysis

For the last quarter, Affirm reported a revenue of $698M. This represents a 5.96% increase compared to the previous quarter, which is a positive indicator of growth. Year-over-year, the revenue surged by 40.67%, suggesting strong, sustained growth.

In terms of net income, Affirm reported $100M for the last quarter. This, however, is a 122.04% decrease compared to the previous quarter, highlighting some concerns. Nonetheless, compared to the same quarter last year, net income increased by 41.66%, indicating a long-term positive trajectory.

The EBITDA for the last quarter was $6.4M. Although this represents an 87.86% decrease compared to the previous quarter, there is a striking 107.78% year-over-year growth, suggesting the company's potential profitability over longer periods.

However, it is crucial to note that there have been a couple of company insiders selling their stock recently, which is often considered a bearish signal.

Technical Analysis

Today's stock price for Affirm is $69.00. This is an increase of 11.18% compared to a month ago, indicating a positive short-term trend. Compared to a year ago, the stock price has increased by 36.74%, which suggests a positive long-term trend. However, the current bearish trend cannot be ignored as these movements are not sufficient to change the overall downtrend.

Moreover, the current 10-day Simple Moving Average (SMA10) for Affirm is $69.87, which is lower than the previous SMA10 of $70.16. This downward movement points towards a potential ongoing decline in stock price. The Relative Strength Index (RSI) is currently at 37.6, indicating a neutral condition but leaning towards the oversold territory.

Alternative Data Analysis

According to the most popular job boards, Affirm has 549 open positions, a number that has increased by 449% over the last couple of months. This suggests that Affirm is aggressively expanding its workforce, which is a healthy indicator for future growth.

Employee sentiment toward the company's business outlook remains neutral.

Affirm's customer acquisition seems robust, with an estimated 23 million visitors to their website, marking a 23% increase in the past couple of months. Additionally, about 17,000 users are downloading their mobile apps daily, a 75% increase in the past months, paving the way for more customer engagement.

However, Affirm's social media engagement shows some stagnation. Their Instagram follower count remains flat at 160,000, and their Twitter page follows the same trend at 19,000 followers.

AltIndex's AI score for Affirm is 66, which signifies a buy signal based on comprehensive data analysis from various sources.

Conclusion and Recommendation

Affirm presents a mixed bag for potential investors. On one hand, the company shows robust revenue growth and a promising increase in customer acquisition and engagement. On the other hand, certain key financial metrics indicate short-term struggles, and insider selling is a red flag. The technical analysis points towards a bearish trend, though the recent price movements offer a glimmer of hope.

Considering the AI score of 66 from AltIndex, which signifies a buy signal, and the significant long-term growth potential shown by fundamental and alternative data, a cautious recommendation would be to "Buy" Affirm stock, focusing on long-term gains while being aware of short-term risks.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.